September brings a sense of a fresh start to the business world. Companies return from holidays, new projects get underway and, most importantly, management teams start planning their budgets for the final quarter of the year. Rather than waiting until December, when everyone is frantically looking for last-minute gifts, forward-thinking organizations are already putting their B2B gifting strategy in place.
Because this is a specific area where legislation and employee motivation intersect, we have prepared a transparent guide covering the key questions around modern employee and partner rewards.
Why are traditional corporate gifts losing their appeal?
For years, corporate gifts for employees and business partners were predictable: mugs, calendars, notebooks or generic food hampers. Today, this approach is becoming less effective. Modern employees and business partners value usefulness and freedom of choice. A generic gift often ends up sitting in a drawer or being forgotten altogether, which means wasted money for the company and little to no impact on employee or partner loyalty.
What is a Closed-Loop system and why is it ideal for B2B rewards?
A Closed-Loop gift card system means that a card can only be redeemed within a specific network of stores, a company or a destination. This is particularly attractive for the B2B segment because the company giving the gift knows exactly where the value will be spent.
If you manage a shopping centre, city or a specific network of businesses, you can offer your gift card to local companies as the perfect local corporate gift, while also supporting the local economy.
What about tax benefits for employee gifts?
This is one of the most common questions. Companies are always looking for ways to reward employees in the most tax-efficient way possible. Tax treatment and potential exemptions depend heavily on the form and purpose of the reward. Legislation may allow certain tax-exempt amounts for gifts to employees’ children at the end of the year or for specific anniversaries and milestones.
Digital gift cards also make record-keeping more transparent and simplify the work for accounting teams, as every transaction can be tracked and documented in accordance with applicable regulations.
How can a gift card improve employee motivation?
Personalization is key to successful employee rewards. When an employee receives a gift card powered by the SmartGifty platform, they are not simply receiving a fixed amount of money. They are given the freedom to choose their own reward and use it when it actually suits them.
The act of choosing the gift becomes part of the experience. An employee is likely to remember the trip, dinner or piece of technology they bought with your gift card far longer than yet another generic plastic pen with the company logo on it.
When is the right time to implement a B2B gift card sales channel?
If you want other companies to purchase your gift cards for their employees, the infrastructure needs to be ready in September. This is when many companies are planning and approving their financial plans for the final quarter and the end of the year.
By launching a simple B2B portal for ordering gift cards, you can allow companies to order larger quantities in just a few clicks, receive a single consolidated invoice and simplify the logistical challenges that come with the holiday season.
Your B2B marketing strategy needs to be ready before they are.
